2022 HSA Contribution Limits

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The IRS announced the 2022 HSA contribution limits. For 2022, HSA-eligible account holders are allowed to contribute $3,650 for individual coverage and $7,300 for family coverage. Read more for more specifics on how HSA qualifications will change in 2022.

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On May 10, 2021, the Internal Revenue Service (IRS) announced the HSA contribution limits for 2022. For 2022, HSA-eligible account holders are allowed to contribute:

  • $3,650 for individual coverage
  • $7,300 for family coverage

Both coverage levels are a $50 increase for individuals and $100 for families from 2020 HSA contribution limits. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

To be eligible for an HSA in 2022, your health plan has to meet the following IRS criteria for a high-deductible health plan (HDHP):

  • Must have a minimum deductible of $1,400 for individual coverage, and $2,800 for family coverage
  • Out-of-pocket maximums cannot exceed $7,050 for individual coverage and $14,100 for family coverage

Minimum deductible limits are unchanged from 2021. Annual out-of-pocket limits have increased $100 for individuals and $200 for families from 2020.

How HSAs Work

A Health Savings Account (HSA) is a tax-advantaged savings account. Think of it as a 401(k) for healthcare. In order to contribute to an HSA, you must have a high-deductible health plan.

HSAs allow for tax-deductible contributions, tax-free interest and tax-free withdrawals for qualified medical expenses. This means the money you contribute to an HSA can be used tax-free on health expenses such as prescriptions, copays, and more. This can help you minimize your health care costs throughout the year while saving for the future.

If you choose a high-deductible health insurance plan through an employer, you are likely eligible to contribute to an HSA. If this is the case, your employer can also help to contribute to your HSA before taxes, so you can receive extra savings until you reach the annual contribution limit.

The main benefit of an HSA? It’s 100% yours. If you leave your job, you can take your HSA (and the funds that you contributed to it) with you. This is different from a Flexible Spending Account (FSA) in which the funds will get returned back to your employer.

There are three different tax advantages you can get from your HSA:

The result is the most tax-advantaged account on the market.

Interested in seeing how HSAs have changed over the years? See previous year's contribution limits below:

To get started, see if you are eligible for an HSA or sign-up for a free account.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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